Small business compliance issues raised

Associate Justice Minister, Nicole McKee has welcomed a report by BusinessNZ, which addresses the steps needed to reduce some of the compliance burden on small businesses.

The report, released last month, provides a comprehensive overview of the key issues faced by small businesses, as identified in recent roundtable and stakeholder discussions.

These include the high costs associated with meeting compliance requirements, the administrative burden of managing compliance, and the operational disruptions caused by disjointed standards.

Defined as businesses with fewer than 20 employees, there are about 546,000 small businesses in New Zealand, representing 97 per cent of all firms.

The BusinessNZ report recognised that these businesses often struggle to maintain consistent practices and stay updated on regulatory changes, leading to potential legal consequences and reputational damage. 

Small businesses outlined many ways to respond to these challenges, including harmonised regulatory standards, streamlined compliance processes and better support services, tools and guidance for effective compliance. 

Combined, these solutions could alleviate the compliance burden on small businesses, enabling them to operate more efficiently, remain competitive and contribute to economic growth, the report stated.

Minister McKee said the report echoed many of the concerns she had heard from businesses.

“Many of the challenges to businesses identified in the report will be addressed through the Anti Money Laundering/Countering Financing Terrorism (AML/CFT) work programme,” she said.